Yarudeiskoye oil field development begins in Yamal

Novatek has begun commercial oil production at the Yarudeiskoye oil field in the Yamalo-Nenets Autonomous Area, the company's press service reports.

Thirty-six production wells have already been drilled at the oil field. The central custody transfer facility has been set up as have been an oil and gas collecting system, a pump station, and oil and gas pipelines.

It is expected that the average daily production will quickly reach the planned production level of 3.5 million metric tons per year.

"The launch of the Yarudeiskoye oil field is an important milestone in the company's history because it is our first major oil project. In the past three years, we have been rapidly increasing production of liquid hydrocarbons. With the Yarudeiskoye oil field in operation, we will maintain the current growth rate next year, and this will also have a positive effect on our free cash flow," Novatek CEO Leonid Mikhelson said.